Gokaldas Exports acquires Atraco Group in $55m deal to expand apparel business


In a strategic move to bolster its global presence, Gokaldas Exports Limited (GEL) has announced the acquisition of Atraco Group, a Dubai-based leading apparel manufacturer with a robust market position in the U.S. and Europe. The deal, valued at $55 million, will bring Atraco’s extensive product range, including shorts, pants, shirts, and dresses, under the GEL umbrella.

Atraco Group’s Strong Legacy to Complement Gokaldas Exports Limited’s Global Expansion

Founded in 1986, Atraco boasts over three decades of leadership in the apparel industry and operates four manufacturing units in Kenya and one in Ethiopia. In 2022, the group reported a revenue of approximately $107 million and a post-tax profit of $7.2 million. Atraco employs more than 13,000 workers across multiple locations in Kenya, Ethiopia, and the UAE. “The acquisition of Atraco is an important step for GEL as it strengthens our value proposition to customers and provides access to low-cost, duty-free manufacturing locations,” said Sivaramakrishnan Ganapathi, Vice Chairman and Managing Director of Gokaldas Export Limited.

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Deal Details: Mix of Debt and Internal Accruals

The acquisition, which will comprise the purchase of shares and assets, is subject to customary regulatory approvals and is expected to close by Q3 FY24 (Oct-Dec 23). The $55 million equity value of the transaction will be funded through a mix of debt and internal accruals. Gokaldas Exports was assisted in the transaction by JM Financial Limited as the transaction advisor, Khaitan & Co. as the legal advisor, and BDO UAE and BDO East Africa-Kenya for due diligence.

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By acquiring Atraco, Gokaldas Exports not only adds a significant revenue stream but also inherits an admirable leadership team and a global customer base. “We are excited to welcome over 13,000 new members into the GEL family,” Ganapathi added. This acquisition marks a pivotal moment in GEL’s growth strategy, setting the stage for an enhanced global market presence in the apparel industry.

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